The following is a summary of the Strategic Education, Inc. (STRA) Q2 2024 Earnings Call Transcript:
Financial Performance:
SEI's revenue grew 9% to $313 million in Q2 2024.
Operating income surged over 60% to $44 million, with operating margins increasing by 460 basis points.
Earnings per share increased by more than 60% to $1.34.U.S. higher education operating income grew 194%.
Education Technology Services (ETS) revenue increased 26% and operating income by 63%.
Sophia's revenue surged 40% with a 49% operating margin.
Australia-New Zealand (ANZ) saw a revenue growth of 10% and an operating income increment to $14 million.
Business Progress:
Strong growth fueled by employer-affiliated enrollment, especially in the U.S. higher education.
23 new corporate partnerships added in the ETS segment.
Increased investments in marketing anticipated in Australia.
Significant growth from Sophia and Workforce Edge in ETS, leading to a decision to increase investments in these areas for accelerated growth.
Opportunities:
Continued emphasis on corporate partnerships significantly driving enrollment, with potential for more than 50% of U.S. higher education students to become corporate-affiliated in the future.
Risks:
Increased operating expenses expected in the latter half of the year, potentially impacting operating margins earlier predicted to expand.
More details: Strategic Education IR
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